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Service Today (NYSE: NOW) shares climbed up 10%, Thursday, in the wake of business-software companies reporting better than expected results in the first quarter amid a difficult period for software developers.
Last Wednesday, ServiceNow (NOW) reported revenues of $ 1.76 per share, not including one-time items, on $ 1.72 billion in revenue. Wall Street analysts predicted that the company would earn $ 1.70 per share, with $ 1.7 billion in sales. In the same period last year, ServiceNow (NOW) earned $ 1.52 per share, on revenue of $ 1.36 billion.
Speaking at a conference call to discuss the results of ServiceNow (NOW), Chief Executive Bill McDermott referred to the effects of Russia’s ongoing war against Ukraine on his company’s business. McDermott said that while there are “significant challenges in the world, especially in the situation in Eastern Europe, ServiceNow (NOW) has not seen a“ material impact ”on its operations due to the conflict.
“On the contrary,” McDermott said. “The challenges emphasize the need to invest in digital business.”
ServiceNow (NOW) said a sign of its business performance can be seen in its subscription revenue. Sales of subscriptions in the first quarter reached $ 1.63 billion, a 26% increase from last year.
Going forward, ServiceNow (NOW) expects to report second quarter subscription revenue of $ 1.67 billion to $ 1.675 billion.